Diamond Power Infrastructure522163Routine SEBI update

CARE Ratings monitoring report: nil deviation in use of QIP proceeds for the September 2026 quarter

CARE Ratings has given its monitoring agency report for the quarter ended September 30, 2026 on how the company used its QIP money.

By ScoutQuest · Tue 3 Nov 2026, 1:48 PM IST · 3 min read

QIP Size: Rs. 1,613.97 crore
Deviation from Objects of the Issue: Nil
Report Period: Quarter ended September 30, 2026

What has been shared

Diamond Power Infrastructure Ltd has disclosed the Monitoring Agency Report issued by CARE Ratings Limited for the quarter ended September 30, 2026. The report tracks how the company used the money raised through its Qualified Institutions Placement (QIP). The report was reviewed by the company's Audit Committee at its meeting held on November 3, 2026.

Main conclusions in the report

Deviation from the objects of the issue: Nil.
Range of deviation: Nil.
Utilisation of the proceeds is stated to be as per the disclosures in the offer document.
The means of finance for the disclosed objects has not changed.
This is the first monitoring agency report for this QIP.

Where the QIP money went

According to the monitoring agency, the QIP proceeds were used for

repayment of unsecured loans from promoter and promoter group entities;
working capital requirements, primarily through vendor payments;
capital expenditure;
general corporate purposes, which included repayment of unsecured loans from corporate bodies and deferred term loans under the CIRP;
a portion towards issue-related expenses.

Basis of the monitoring agency's review

The agency says it relied on a management certificate, bank statements, a chartered accountant certificate dated October 20, 2026 from Naresh & Co. (statutory auditor), invoices and repayment confirmations from lenders. It also notes that, apart from confirming that utilisation was in conformity with the offer document, no other details were included in the CA's certificate, and the management certificate was therefore relied upon for verification. The agency states that it does not perform an audit and undertakes no independent verification of the information it receives.

QIP details as stated in the report

Issue period: July 23, 2026 to July 28, 2026.
Type of issue: QIP of equity shares.
Issue size: Rs. 1,613.97 crore.
Sector: cable and conductor manufacturing.

Background note carried in the report

The report records that the company faced financial stress and defaults and was admitted into the Corporate Insolvency Resolution Process by the NCLT, Ahmedabad Bench, on August 24, 2018. The resolution plan submitted by a consortium comprising GSEC Limited and Rakesh Shah was approved by the Committee of Creditors with 89.46% voting and thereafter approved by the NCLT on June 20, 2022. Control then passed to the new promoter group comprising Rakesh Shah, GSEC Limited and the Monarch Group. In September 2026, the company fulfilled its obligations under the approved resolution plan, including prepayment of the cash consideration ahead of the stipulated schedule, and formally exited the NCLT resolution framework.

Auditor observations noted in the report

As per the FY26 annual report, the auditor issued a qualified opinion. The qualification related to incomplete verification and reconciliation of PPE and CWIP, pending determination of value-in-use and remaining useful life of legacy assets, depreciation on pre-NCLT assets being charged at 20% of the applicable rate, and the basis for capitalisation of electricity, manpower and interest costs in CWIP.
As of Q1FY27, the company completed verification and reconciliation of PPE and CWIP and regularised the historical depreciation shortfall through aggregate prior-period adjustments of ~₹426 crore against capital reserve and retained earnings.
The auditor then issued an unmodified opinion in the limited review report for Q1FY27, with an Emphasis of Matter on the depreciation adjustment.

How to read this

A monitoring agency report is a periodic check by an outside agency that money raised in a share sale was spent on the purposes stated in the offer document. A reading of nil deviation means that, for this quarter, the agency's review found the spending in line with the disclosed objects. The report is a monitoring exercise based largely on certificates and documents supplied to the agency, and the agency states that it does not perform an audit of that information.

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